All organizations have supply chains with varying degrees of complexity and opportunities for value creation, cost reduction, and visibility and innovation enhancement. Organizations can leverage the DARE Model to identify where in their supply chain systems opportunities for enhanced profitability, innovation, and cost reduction can be targeted.
The DARE Model enables the removal or reduction of systemic waste, non-value-add elements, complexity, and is a driver for the realization of simplicity and operational cohesiveness. The model aids in radically reducing the Total Cost to Serve and Total Cost of Ownership. Once challenges have been identified and ran through either the PDCA or DMAIC Problem Solving Model you are on the way to realizing great cost reduction and innovation.
Did you know that up to 60% of supply chain activities do not add value to the value chain? This 60% is a waste!
We at NLPA, DARE you to deploy the DARE Model!
To leverage the DARE Model AXY Inc. will have to follow the following process:
Step 1: Examine its performance from its Profit and Loss Statement, Cash Flow Statement, Cash to Cash Cycle Time Report
Step 2: Select opportunities from the DOWNTIME categories, Six Big Loss categories, and VUCA Categories
Step 3: Develop Projects using either the PDCA or DMAIC Model to improve the situation
Step 4: Compare the Profit and Loss Statement, Cash Flow Statement, Cash to Cash Cycle Time Report, after improvement to the original reports
Step 5: Determine the degree of gap closure
Step 6: Repeat this process
The globalization of Supply Chains is nothing new. The benefits of such strategic actions have been numerous
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